The Internal Revenue Service is auditing dozens of cannabis companies in Colorado, sparking concern in the marijuana industry, Marijuana Business Daily reported Tuesday.
At least 30 Colorado businesses have been audited in recent weeks, Colorado attorney Jim Thorburn told MBD. The audits center around forms companies are required to complete when they get at least $10,000 in cash from customers.
Due to federal law requirements and hesitant credit companies, many businesses in the marijuana industry require customers to pay in cash. Cash businesses can be more prone to tax evasion and money laundering.
The IRS has not yet confirmed the audits. An IRS spokesman told CNBC that the federal agency responsible for making sure businesses and citizens are paying their taxes “is prohibited by law from commenting on specific taxpayers.”
Denverite has calls out to the IRS and Thorburn.
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